Suppose a linear probability model finds that there are 2 factors influencing bankruptcy: debt-to-equity ratio and sales-to-total assets ratio. Using past bankruptcy experience, researchers have estimated the linear probability model to be PDi = 0.64(Debt/Equity) – 0.05 (Sales/Total Assets). A firm you are thinking of lending to has a debt-to-equity ratio of 1.9 and a sales-to-total assets ratio of 0.8. (a) Estimate the probability of default using the linear probability model. (b) Estimate the logistically transformed probability of default.